Meeting Current Company Goals in Turbulent Times: The Silver Bullet for CEOs

A timeless McKinsey study concludes that 2 out of 3 companies worldwide underperform, operating well below their true potential.

Furthermore, other studies suggest that, on average, this underperformance amounts to 30%.

In ordinary times, this means there is a substantial untapped productivity increase opportunity in most companies...

However, 2023 is far from "ordinary times".

We find ourselves in the early stages of a post-pandemic world marked by hybrid work, high inflation, social radicalization, deep political division, war in Ukraine (and now in Israel)...

The horizon seems clouded with uncertainty and challenges.

Yet, CEOs of medium-sized companies press on, facing a pivotal question:

"How can we meet our current company goals amidst such turbulence?"

The Challenge

The post-pandemic, high inflation economy has ushered in a new set of challenges for businesses.

Economic uncertainties loom large, and the process of thriving begins with the workforce.

Employees, having weathered the pandemic's stress and anxiety, combined with the shift to remote work, are returning to the office, but their levels of engagement, motivation, and inspiration fall short of what CEOs need them to be.

A Solution Closer Than You Think: The Case of Ford During the 2008 Crisis

Ford, although not a medium-sized company, provides an insightful case study.

Its story offers valuable lessons about vision and decisions that apply to companies of all sizes.

The Story

The 2008 financial crisis cast a shadow over the automotive industry, with many iconic companies struggling to stay afloat.

Amid tightened credit markets and plummeting consumer confidence, vehicle sales took a steep plunge.

Faced with the stark choice between government bailouts or bankruptcy, many companies found themselves at a crossroads.

In this bleak landscape, Ford emerged as a beacon of hope.

The linchpin of Ford's survival was an unwavering commitment to engaging its workforce in the face of adversity.

Their strategy was clear: ???? involve every employee in the recovery process, make them feel valued, and tap into their collective intelligence for innovative solutions.

Cooperation and Engagement

Ford's leadership understood that their success depended on the collective efforts of their workforce.

???? CEO Alan Mulally championed a culture of collaboration and open communication. Unlike some of its competitors, Ford abstained from seeking a government bailout. Instead, they turned inwards and encouraged employees to actively participate in cost-saving initiatives.

???? Employees from various departments were invited to the table to share insights, suggestions, and ideas for streamlining operations. This inclusive approach instilled a sense of ownership among employees, making them realize that their ideas could significantly impact the company's future.

Cost-Saving Measures

The engagement of the workforce extended to cost-saving measures.

Employees, from factory floors to executive offices, actively sought ways to reduce costs without compromising quality.

This not only improved the company's financial health but also instilled a strong sense of unity and commitment. ????

Innovative Solutions

To enhance their business, Ford invested in innovative solutions. Prioritizing the development of fuel-efficient vehicles and hybrid technology, they introduced the "One Ford" plan aimed at consolidating global operations and reducing complexity.

???? This allowed the company to produce vehicles more efficiently and tailor them to regional markets.

?? Employee engagement played a pivotal role in implementing these changes. The employees' enthusiasm, commitment, and innovative thinking powered the company's transformation.

The Result

Ford's resilience paid off. Unlike some of its rivals, they didn't file for bankruptcy or seek a government bailout. In fact, they were the only American automaker that didn't require federal assistance during the crisis. Ford not only survived but thrived in the years that followed.

The engagement and cooperation of its workforce were pivotal in this journey. Employees embraced the company's vision, implemented cost-saving measures, and contributed to the development of groundbreaking vehicles.

This focus on people engagement during a time of immense uncertainty and crisis ensured that Ford emerged from the 2008 financial meltdown as a stronger and more innovative company.

The Silver Bullet to Meet Company Goals in Turbulent Times

Ford's success wasn't a fluke; it resulted from a strategic approach to employee engagement.

The company recognized that employee engagement isn't just a buzzword; it's the heart of any successful organization. They implemented several key strategies to keep their workforce engaged.

7 Keys to Foster Employee Engagement

1?? Clarity: A Compelling Why and a Specific What

Several CEOs believe that they have made enough efforts to communicate their vision and the proper sense of urgency. The truth is they haven’t.

Even in turbulent times, most people continue focusing on “business as usual” and getting paycheck at the end of the month.

Extraordinary measures are needed during extraordinary times. “The house is burning, aliens are here, we are in hell right now (like Al Pacino on Any Given Sunday)… that would be compelling, turning on their sense of urgency: "Now we have a lot to lose. Now we have something important to win."

People need a Why: What’s in it for THEM.

And a What. A Goal. A Very Specific One. Don’t worry about the how.

With a strong why and a clear what, they will take provide the best how possible.

2?? Focus, Focus, Focus

"We need to focus, FOCUS!" said Matt Damon in Invictus to his Team during the World Cup Final with a thick southafrican accent.

And yes. Companies also need to focus, focus: Every team. One Goal.

The One Thing like Gary Keller's book.

Managers and teams tend to divide attention throughout tens of KPIs. Now, they need to focus. Those crucially important few things that will dramatically move the needle.

3?? Empowerment and Autonomy

Daniel Pink in the book “DRIVE” says that control leads to compliance (the minimum effort, the glass half-empty), while autonomy leads to engagement (the extra mile, the glass half-full).

2 out of 3 companies fail to implement their strategies, but 90% of the strategies and tactics that failed were properly designed... They failed because of lack of engagement.

People know, in general, how to do their jobs, but they don't see the problem as their's.

CEOs need a compelling Why and a Clear What, but they must let their teams do their jobs and be part of the solution, so it is THEIR solution. Not the CEO’s.

4?? Accountability and Feedback

Accountability isn't a tool of control; it's a tool of engagement.

Leaders must open these spaces of interaction and provide guidance, so the team moves forward, inch by inch, at a proper pace, with every player fighting for the next inch (again, Al Pacino’s words).

5?? Collaboration and Trust?

Trust is the cornerstone of functional teams. Dysfunctional teams have a lack of trust at their core. As a leader, work hard to cultivate trust by being open, transparent, and receptive to risks and mistakes.

6?? Recognition and Celebration

Celebrate small victories and acknowledge individual and collective efforts. It's not about bonuses; it's about making your team feel like they're part of a fighting team, one defined by grit, camaraderie, excellence, and high ethics.

7?? Do It Now.

You don't have time to waste. Time is your worst enemy, along with procrastination.

In Conclusion

In turbulent times, employee engagement is the anchor that keeps the ship steady. By heeding the lessons from Ford and embracing these strategies, CEOs can turn the challenge of high inflation into an opportunity for growth and success.

Meeting your company's current goals in turbulent times is not just a possibility; it's a reality waiting to be realized:

1. Find the crucially important goals.
2. Align your management team.
3. Set up high-performing teams throughout the organization.
4. Give them the whys and the whats.
5. And build a culture of execution and accountability.

Week after week, you will see the difference.

All the best,

Esteban

About the Author:

Esteban Bedoya is a Leadership and High-Performance Consultant with over 15 years of experience working with organizations to help them elevate their performance and productivity.

He has a background as an Executive in Human Resources and Strategic Planning within multinational companies and currently serves as a Partner and General Director at Galway, a prominent Leadership and High-Performance Consulting Company.

(Contact: [email protected])

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